Galaxy Digital, a crypto financial services firm, has reported strong momentum across all of its business lines, according to a report by Canaccord Genuity. The company’s net income grew by 40% to $422 million in the first quarter, and Canaccord expects this positive trend to continue.
One of the catalysts for this growth was the approval of spot bitcoin exchange-traded funds (ETFs), which led to increased engagement with counterparties. Galaxy Trading, the company’s trading unit, saw a 79% increase in counterparty trading revenue to $66 million. The approval of spot bitcoin ETFs attracted traditional asset managers and hedge funds to enter or reenter the crypto space.
GalaxyOne, the company’s institutional platform, also gained traction with over 75 institutional clients and more than $1 billion of assets. Canaccord highlighted the potential for Galaxy to offer its full suite of products, including custody, lending, spot trading, hedging, and derivatives, to these institutional clients.
Galaxy Digital’s asset-management business also performed well, with assets under management (AUM) reaching $7.8 billion, a 50% increase from the previous quarter. Additionally, the company’s infrastructure and GK8 business, which focuses on self-custody solutions, experienced significant growth.
Looking ahead, Canaccord believes Galaxy Digital has the opportunity to pursue both mining and AI hosting through its increased proprietary mining hashrate and the Helios facility. The broker maintains a buy rating on Galaxy shares with a price target of C$17.